Introduction

This is one in a series of money-saving tips. For more information, please visit my home page.

Medicare Supplements

When I was searching around for a medicare supplement (also called medigap) I learned that there are a limited number of plans. The plans have letter codes going from A to L and each plan's coverage has been dictated by the federal government. Lots of insurers offer these plans and each insurer is free to set their own price.


But, plan F (one of the most popular) is plan F regardless of the insurer. Each insurer must provide the same coverage for it. Most insurers register your coverage with Medicare so that when you have a claim, Medicare automatically forwards the claim information to them for further processing.


In my state (Illinois) there is a web site that lets you compare insurer's rates. You can also request a printed copy of the information.


What is very helpful is that it shows what the premiums are for the various plans for all of the insurers that offer coverage. And, it shows what the premiums are if you are 65, 75, or 85 years old. Some insurers appear to offer low rates at age 65 but the rates go up fast as you get older. For others, the rates don't go up nearly as much as you age.


When I last looked at the comparison chart for plan F at age 65 there was one insurer at the high end that was charging $3,146 per year and another at the low end that was charging $1,408 per year. Guess which one I signed up with.

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